hello!! I need help please

Operating cash flow (OCF) is calculated by adding back depreciation to the net operating profit after taxes.

True orFalse

In the short run, relative purchasing power parity does not explain changes in exchange rates well.

True orFalse

When buying foreign currency, you can expect to receive the rates quoted on the internet.

True or false

Meals on Wings Inc., which supplies prepared meals for corporate aircraft, needs to purchase new broilers. The new broilers would replace broilers purchased 10 years ago for $105,000, which are being depreciated on a straight-line basis to a zero salvage value (15-year depreciable life). The old broilers can be sold today for $63,000. The new broilers will cost $202,000, installed (not counting funds already spent), and will be depreciated using straight-line depreciation over their 5-year life. They will be sold at their book value at the end of the 5th year. The firm expects to increase its revenues by $27,000 per year if the new broilers are purchased, but cash expenses will also increase by $3,000 per year. Annual interest expense will be $2,000, and net working capital will increase by $5,000. The new broilers will occupy space currently leased to another firm for $530 per month, and $5,000 has already been spent preparing the building for new broilers. The firm's tax rate is 40%. What is the cash flow from the replacement project for Year 1? Round your answers to the nearest dollar.

$27,760

$27,442

$23,944

$22,744

$17,640